Cryptocurrency Vocabulary You Need To Know

Cryptocurrency Vocabulary You Need To Know

Written by Pray

Trading jargon might appear as complex as blockchains are, so we thought we'd put together a small article to clarify with some common vocabulary you need to be informed about this Digital Currency Revolution!

First things first, these are the list of six things that every cryptocurrency must be in order for it to be called a cryptocurrency:

| Digital - only exists on computers, no coins, no notes.

| Decentralized - don’t have server. They are transmitted across a network of (typically) thousands of computers.

| Peer-to-Peer - distributed from person to person online. 

| Pseudonymous - means that you don’t have to give any personal information to own and use cryptocurrency. 

| Trustless - users are in complete control of their money and information at all times.

| Encrypted - user has special codes called cryptography and it’s nearly impossible to hack.

| Global - can be sent all over the world without borders.

Let's get started! Now here are some of the most common words in the industry.

1. Cryptocurrency - decentralized digital money

2. Mining - where miners try to solve mathematical puzzles first to place the next block on the blockchain and claim a reward.

3.Exchange - an exchange is a business (usually a website) where you can buy, sell or trade cryptos.

4. Wallet - crypto wallets are software programs that store public and private keys which enable users to send and receive digital currency.

5. Blockchain - all cryptocurrencies use distributed ledger technology (DLT) to remove third parties from their systems.

6. Hash - it identifies a block like fingerprint.

7. Bitcoin - most popular digital currency, can be traded for goods or services with vendors who accept BTCs. 

8. Satoshi -smallest indivisible unit of the Bitcoin, like a cent.

We hope you find this list useful. Along your journey, we will be posting more about different type cryptocurrencies for your education.

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